Do We Need to Deduct ESI and PF for Skilled Casual Workers in Catering?

Need a clarification about casual labor. We are a catering industry. We engage some people to cook food/sweets when needed who are more skilled in the preparation of a particular food. It may be eight to ten days a month. There are 4 to 5 persons, and they will be paid Rs 2000 to 3000 per day depending on the preparation of food/sweet. Please let us know whether we have to collect ESI and PF for these people. Even if they work for ten days a month, their monthly pay crosses 15000. Please reply.

ESI Coverage

The above-mentioned persons are not covered under the ESI domain.

Justification

1. ESI is not applicable for seasonal factory workers.
2. An insured person has to contribute a certain number of days in a contribution period to enjoy benefits under ESI in the benefit period. If these workers work only 10 days a month, they cannot contribute towards ESI in the contribution period.

Example: An employee has to contribute 78 days in a contribution period to enjoy sickness benefits in the benefits period.

PF Coverage

Casual employees as well as daily wagers are covered under the PF. If there are any corrections, I welcome members in the forum to correct me.

With Regards,
Mr. Thumbs Up

Good morning,

Thank you very much for your immediate reply, and I have noted the contents. Please clarify the following:

Let us set aside the working days, contribution period, eligibility, etc. Suppose we have a casual laborer working for ten days. For example, we are paying 1000 per day, and he works for ten days in a month. Therefore, his monthly salary amounts to approximately 25000. Since he is earning more than 15000, do we need to collect ESI and PF in this case?

Hi Buddy,

The moment an employee is drawing more than 15,000 rupees per month, he/she ceases to be a member of the ESI scheme. However, they are still covered under PF.

With Regards,

Mr. Thumbs Up